Did you know that there is a currency more than 12,000 cryptocurrencies in existence? Cryptocurrency mining is the process through which new crypto coins are minted, and yield returns to their miners by their circulation.
New transactions are confirmed and added to the ledger, which requires computer hardware that performs several complex calculations. Miners race against each other to become the first ones to guess a hexadecimal number called a hash to get rewarded.
Crypto mining happens across countries in the world. The crypto industry is energy intensive and requires high internet speed as well as a relatively cool climate for mining instruments to cool down. Pro-crypto policies and taxation policies are also beneficial. Below are the countries that top the list in crypto mining by providing favorable conditions for crypto mining.
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Top 10 countries for crypto mining
The top countries involved in cryptocurrency mining are given below.
In the 2010s, Georgia became a major Cryptomining hotspot. Having cheap electricity, the absence of any legal restrictions and encouragement by tax incentives have promoted crypto mining in the country.
By 2018, Georgia ranked second in the Bitcoin mining profitability soon after the country established a Free Economic Zone (FEZ) in Tbilisi. The government is extremely pro-Blockchains in Georgia and has even moved its records into it.
High internet speeds and low-cost electricity has made Iceland popular for crypto-mining. The use of energy, such as hydroelectric dams and geothermal plants, has enabled Iceland to generate cheap electricity.
There is reliable infrastructure and geopolitical advantage. There are also no legal restrictions on crypto mining. About 8 percent of the world’s bitcoins are mined in Iceland.
Canada has excellent internet speed, ranking 17th in the world with 149.35 Mbps internet speed. Moreover, it also has cheap electricity. The price of electricity is 0.174 USD per kWh.
Canada saw its crypto boom in 2018 due to relatively cheap electricity. It also has cold weather, and regulations are lax. Digital currencies are not legal tender, but they are not criminalized either.
Norway, too, is among the top countries with active crypto mining – it has a high internet speed of 146.54 Mbps, ranking 18th in the world; reliance on hydroelectricity has made electricity cheap, and the weather is cool.
Taxes are levied on owning and investing in cryptos, but there are no prohibitions or crypto-ban. Money laundering regulations exist; however, Norway is overall a good country for crypto mining.
Estonia, too offers high internet speed and has low electricity prices. Its internet speed is 74.73 Mbps, and its electricity is 0.174 USD per kWh. The country has open and innovative regulations for cryptocurrencies. The government views cryptocurrencies as “value represented in digital form.”
It is legal to exchange Crypto, and hundreds of crypto companies are in the country.
Kuwait is 34th in the world in the internet speed ranking. Its download speed is 110.33 Mbps. It has cheap electricity – its average price of electricity is 0.029 USD per kWh.
Despite these advantages, there are certain policy issues regarding Crypto. There is no recognition of Crypto, and there is a prohibition on crypto trading by the Central Bank of Kuwait. However, there is a government-issued e-currency.
Finland is one of the top countries in terms of investment and capacity, with more than 3,000 bitcoin miners and a total investment value of roughly €300 million. The nation’s electrical grid, which benefits the sector, is one of its assets.
A regulation enacted by the Finnish parliament in 2015 designates bitcoin as a financial asset and levies capital gains tax on it.
Sweden also has advantages that favor the crypto industry. It has a less cold and windy climate. This aids the generation of electricity at even lower costs. The internet speed too is fast. The country ranks 14th in the world in terms of internet speed.
As a result of Sweden’s falling use of currency, there has been discussion about the introduction of the “e-krona” by the Riksbank, the nation’s central bank.
Launching blockchain- and cryptocurrency-based enterprises has never been easier, thanks to government support programs for small firms like the startup law and startup visa. Add to this low electricity cost and high internet for the success of Crypto in Latvia.
The biggest blockchain event in the Baltics is called the Baltic HoneyBadger Bitcoin Conference, which takes place in Latvia. Latvia’s national airlines and real estate accept bitcoins.
Switzerland eased regulations on crypto. The country views them as ownable assets. This makes it a country favorable for crypto mining. There is high internet and relatively cheap electricity, which makes it another attractive crypto haven.
Which countries are ahead in the race?
Countries providing cheap electricity costs due to their reliance on renewable energy sources and crypto-friendly policies are the most favorable for crypto companies and miners to invest in.
Scandinavian countries top this list as not only is their weather cooler than the rest of Europe, but they also use a lot of renewable energy like hydropower. Government policies are also favorable.